So what if the likes of Infosys announce increment freeze,
retention rates have still gone up in the Information Technology sector, especially for higher skilled talent.
According to the Salary Primer 2012 by TeamLease Staffing Solutions, profiles
like business analyst and program manager have delivered significantly higher, longevity
scores despite being rewarded lesser than the last year. "Attrition rates
have dipped across several industries – and for specific profiles – and touched
3-year lows. Select profiles within healthcare, retail, FMCG and
agriculture/agrochemical have longevity scores that have now overshot 93 per
cent. On the skills front, while Information Technology gets away with lesser increments than many
other industries, it still manages to retain top-of-the-line talent. The Information
Technology industry's comparatively
higher salary structure, couFpled with a not-so-ebullient market ensures this
works," the report states. Yet, despite the Information Technology sector registering modest increments, Bangalore
(INDIA), the largest hub of the industry, is a leader with the highest median
salary growth in last one year. "Bangalore (INDIA) has been holding the
reins for about 3 years in succession now. With a median salary growth rate of
8.6 per cent - incrementally higher than last year's – Bangalore (INDIA) seems
in no mood to give up on its top position. Mumbai (8.1 per cent), Delhi (7.7
per cent) and Chennai (6.8 per cent) stay their courses as well,"
according to the report.
In fact, the biggest salary at junior / middle levels, drawn
this year was Rs 142,000 per month by a SAS Programmer in Information
Technology Bangalore (INDIA). The
profile received an increment of 14 per cent year-on-year (y-o-y), across
geographies. The overall hiring in the Information Technology sector grew by almost 20 per cent y-o-y, with
a continued upward trend. As per the report, the sector also managed to retain
top talent without having to increment salaries by a large margin. "The Information
Technology industry is currently in a
win-win situation. The slowdown in market has made employees consider the old
adage of 'one in hand is worth two in bush'. Moreover, with employees staying
back, the Information Technology companies
have been saving up on otherwise additional costs they would have had to incur
on continuing certain projects," says Rajiv Vaishnav, vice president,
National Association of Software and Services Companies. The other sector to
get away with modest increment is retail. "The marginally higher increment
the retail industry pays here is paid back in gratitude with a significant
increase in longevity," Salary Primer 2012 states.
However, contrary to Information Technology and retail industry, not rewarding its higher
talented profiles cost the FMCG industry in terms of increased attrition.
"Thankfully, the attrition rates are well under 10 per cent in most cases
and the industry can, perhaps, look at a more equitable reward structure,"
the report adds. According to Salary Primer, as industries get smarter at
hiring and rewarding the right talent, the diversity and sheer number of
profiles getting rewarded with double digit salary growth have zipped up.
"There is increased prevalence of industry city clusters where this
incidence occurs – healthcare in Bangalore (INDIA), automotive in Delhi and
hospitality in Mumbai and Goa are prime examples. Power and energy beats 10 per
cent salary increments across four cities and three distinct profiles,"
the report highlights. Meanwhile, the average salary difference between
temporary and permanent jobs has also come down from 15 per cent a few years
ago to four per cent. "With even more parity forged across industries,
cities and profiles, temp and perm jobs are seen to be fast converging on
salaries," the report adds.
Source: Business Standard
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